Research On The Impact Of Business Diversification On The Total Factor Productivity Of Joint-stock Commercial Banks

With the economy entering a new normal state,our joint-stock commercial banks are facing a new development situation.On the one hand,the slowdown of the real economy has greatly affected the production and operation of enterprises,which has increased the risk of traditional credit business of joint-stock banks;on the other hand,under the strong impact of interest rate marketization,Internet Finance and financial disinter-mediation,banking competition has become increasingly fierce and interest spreads have been narrowing.Under this background,if joint-stock commercial banks want to improve their core competitiveness,they must change the single profit mode and find new revenue growth points in diversified operation.Therefore,exploring the impact of diversification of business structure on the total factor productivity of joint-stock commercial banks has certain academic significance and practical value.From the perspective of theoretical analysis and empirical research,this paper examines the impact of diversification of business structure on the total factor productivity of joint-stock commercial banks.Firstly,this paper summarizes the relevant theories and literature,and defines the connotation of business diversification and Total productivity.On the basis of theoretical research,this paper chooses panel data of 12 national joint-stock commercial banks from 2007 to 2017,calculates business diversification index by Herfindahl-Herchmann index method,and then calculates the total factor productivity efficiency of banks by DEA-Malmquist method,and then uses the system GMM dynamic panel model to empirically explore the impact of business diversification on the total factor generation of joint-stock commercial banks.The results show that:(1)Diversification of business structure can significantly improve the total factor productivity of joint-stock commercial banks.Among them,the scale effect brought by business diversification in the short run will improve the comprehensive efficiency of joint-stock banks;in the long run,business diversification has a positive feedback effect on improving the technological progress of joint-stock banks.(2)The diversification of interest business structure has a more significant effect on improving the comprehensive efficiency of joint-stock banks,while the diversification of non-interest business structure plays a more significant role in promoting the technological progress of joint-stock banks.(3)According to the nature of A-share listing or not,the diversification of interest business structure has a significant promoting effect on the total factor productivity of non-listed joint-stock banks,while the diversification of non-interest business structure has a more significant positive impact on the total factor productivity of listed joint-stock commercial banks.Therefore,this paper puts forward the following suggestions:for all joint-stock commercial banks,we should promote the virtuous circle between diversification of off-balance-sheet innovation business and the effect of technological progress,and avoid homogenization of products and services when promoting diversification of joint-stock commercial banks and we suggest that the regulatory authorities should relax the restrictions of joint-stock banking business appropriately.For listed joint-stock banks,it is suggested that on the basis of maintaining their own assets and liabilities structure,further deepen the vertical diversification of business and improve their financial innovation ability.Non-listed joint-stock banks should strengthen the horizontal diversification of their business within the scope of policy provisions.